Triad Multiple Listing Service, Inc. Shareholder Meeting October 24, 2013
Shareholder Meeting Agenda Welcome and Opening Remarks Burton Kennedy, President 2013 2013 Highlights Richard Renton, Triad MLS Chief Executive Officer Ratification of Changes to Bylaws & Rules and Regulations Richard Renton, Crystal Brown Plans for 2014 Richard Renton 2014 Director Appointments Adjournment
2013 Highlights Public MLS Portal TRIADMLS.com went live at end of 2012 Effective in early 2013, ALL Triad MLS firms are participating in the Public MLS Portal! Fair Display Guidelines Mid 2013, a conglomerate of large brokerage firms adopted a suggested policy for MLS s to follow IF they are going to operate a public facing MLS Consumer portal. We are happy to say that we meet the guidelines outlined in this policy!
2013 Highlights Public MLS Portal In addition to ALL of these guidelines, Triad MLS also: Promotes open houses at no cost No ads for ANY services that a member firm could provide
Public MLS Portal Monthly traffic stats clearly indicate that majority of referral traffic going to Top Ten Firms! Expected based on their listing contributions 2013 Highlights
2013 Highlights rdesk IDX Agent Websites and Customer Relationship Management (IDX Framing) Another benefit of the portal is our ability to offer all Triad MLS members the ability to frame an IDX search engine that incorporates many client collaboration utilities that our previous Tempo solution did not. In fact, they will have access to a complete CRM system whether they utilize the IDX framing or not In fact the same search engine on the public portal will be available for agents to use. This is rolling out in late 2013!
rdesk IDX Framing Engine All around the search frame shown, would be the broker branded website! 2013 Highlights
2013 Highlights Updates Added Short Sale Contingent Status Surveyed all Triad MLS users regarding user satisfaction Adopted new IDX/VOW billing Adopted policy for changing data on closed listings beyond 30 days Added Real Estate License Number to member record information Replaced Kurio mobile offering with TriadMLS2Go! A native app that also has a mobile web presence!
2013 Highlights Updates (cont.) Added Oil and Gas Rights Disclosure field Triad MLS Training Update Triad MLS Financial Review Budget Concerns and Update
2013 Highlights Short Sale Contingent Status BOD recommended adding status of Pending Short Sale to system Rules and Regulations Committee tasked with reviewing recommendation and suggesting rules/policy to proceed Committee members recommended adding a status of Short Sale Contingent to the system The status is considered an Active Type listing Status successfully implemented on 6/27/2013
2013 Highlights Triad MLS User Satisfaction Survey Created using Survey Monkey Distributed through Tempo and Fusion Message of the Day Association Distribution via Email Campaigns Survey open Monday August 19 th to Monday September 9 th 354 Responses received-11% of membership 84 BIC Responses received-23.86% 190 Listing/Selling Agent Equally-53.98% 70 Listing Agent -19.89% / 74 Selling Agent Only-21.02% 26 Appraiser 7.39%
2013 Highlights Overall, are you satisfied with Triad MLS services? We can be 95% confident that if all members had responded to this question, that 88.70% - 94.20% would have responded Yes, they are satisfied with Triad MLS services. We can also be 95% confident that if all members had responded to this question, that 5.80% - 11.30% are not satisfied with Triad MLS services.
2013 Highlights Are you currently using Tempo or Fusion as your primary access to MLS content? We can be 95% confident that if all members had responded to this question, that 49.32% - 53.34% use Tempo as their primary access We can also be 95% confident that if all members had responded to this question, that 24.57% - 33.55% use Fusion as their primary access
2013 Highlights If another MLS platform were available that would be more efficient and easier to use, would you? We can be 95% confident that if all members had responded to this question, that 72.91% - 81.17% of our members are open to changing to a different platform We can also be 95% confident that if all members had responded to this question, that 7.82% - 13.94% are RELUCTANT to change We can also be 95% confident that if all members had responded to this question, that 1.79% - 5.47% are completely against any change
2013 Highlights Adopted new IDX/VOW billing Currently, IDX/VOW vendors are charged a one time fee of $500 and $100 monthly maintenance fee for multi-client vendors After discussion, fact that we are not charging ALL RETS users has opened a door for abuse of the system and potential liability with use of these credentials By consensus, directors approved charging for any issue of RETS credentials for any RETS users as data recipients Data recipients may mean Licensee, Participant, Subscriber or Consultant/Vendor
2013 Highlights Adopted policy for changing data on closed listings beyond the 30 days Based on us receiving so many requests to change data on listings that have been closed beyond the period that users are allowed to edit (30 days) Policy distributed to all Association Staff and they are responsible for gathering the required information and submitting to Triad MLS to make appropriate changes Changing Data on Closed Listings
2013 Highlights Added Real Estate License number to MLS system Member Record Field will appear on all agent reports but will NOT be available for export to 3 rd party sites. Field appears under Agent ID on the reports
2013 Highlights Replaced Kurio mobile web platform with native IOS and Android app, TriadMLS2Go! We discontinued our relationship with Kurio due to contract changes our board felt was not worthwhile continuing. Since we were being billed for registered users and Kurio was unwilling to modify the terms of the agreement without us agreeing to a contract extension, it was decided that changes were necessary on the way we offer mobile services to our members
2013 Highlights TriadMLS2Go Native IOS and Android APP
2013 Highlights TriadMLS2Go Reviews While only four, three are very positive!
2013 Highlights Added Oil And Gas Rights Field with following values Yes, severed by previous owner Yes, severed by seller No No, but seller intends to sever No representation No representation, but seller intends to sever
Triad MLS Training Triad MLS 2013 Training Update We STILL offer FREE training for ALL members. We can accommodate 15-20 members in our training room equipped with up to date laptops running Windows 7 Professional and equipped with multiple browsers for user convenience. Our Trainer has 30 years of REALTOR experience which allows her to relate each of the classes in understandable real estate terms and definitions.
Triad MLS Training Triad MLS 2013 Training Update (cont.) Classes offered: New Member Required 4 hour basic training for all members Only taught using Fusion effective in 2012 TriadMLS2Go - 1 ½ Hours Walks members through how to access the new mobile app and provide hands instructions Fusion - 2 Hours Class specifically designed for existing users of Tempo
Triad MLS Training Triad MLS 2013 Training Update (cont.) Classes offered: Data Coop - 2 Hours Shows new way to access listings Provides a user with a wealth of information not previously available and display on a single screen Realist - 2 Hours Learn how to customize a search in Realist, see FEMA flood map, zip code, county and neighborhood overlays; create mailing labels in seconds, identify distressed properties, identify non-mls sales, view detailed mortgage history on any property along with the recorded Default and Foreclosure proceedings, if any.
Triad MLS Training Triad MLS 2013 Training Update (cont.) Classes offered: Contact Website - 2 Hours Review the steps needed to set up a new prospect and the methods of notifying prospects of new or changed listings Learn how an agent can use this portal to communicate with prospects Finding Comparable Properties using MLS Tools Learn how to use ALL the tools available through Triad MLS to assist with preparing a Comparative Market Analysis. Using a demo subject property, you will see how to find comparable properties in Fusion, Data Coop and Realist. Instruction on CMA Wizard
Triad MLS Training Triad MLS Training 2013 Attendance Update Between January 1 2013 and October 23 2013, a total of 1,174 members have attended various Triad MLS training events!!
Triad MLS Financial Review Relevant Facts Budget Concerns Over 13 years with no dues increase to Shareholders Membership drops of: 38% from peak of 4298 in October 2007 17% from 3751 in January 2006 Technology demands that we continue to offer more services to our members and product offerings have actually INCREASED all throughout this period with limited or NO fee increases to offset costs Potential fine revenue never came to fruition but costs continue to be incurred to provide compliance system Expenses and Staff have been running lean and mean since inception and historical data supports that Unnecessary expenses reduced or eliminated before even discussion of a dues increase was broached
2013 Highlights
Budget Concerns Triad MLS Financial Review As part of the plan to reduce Triad MLS expenses, we reviewed two specific services for continued viability Kurio Mobile Web Platform Clareity Safe MLS / Scout Secure Authentication Kurio While this was a good product, vendor was unwilling to negotiate on our agreement. Since it was no longer feasible to pay fees based on original signup vs. actual ongoing unique users, it was decided to eliminate the product. Of course we could not do this unless and until we had another solution in place.
Budget Concerns Triad MLS Financial Review Clareity Safe MLS Based on many factors, it was decided to eliminate this service. Enforcement and fining not consistent enough to really effectively use based on actual cost In addition, one time fees originally suggested to offset costs were not supported We had enough foresight when we reviewed original agreement to include outs at specific times throughout the term of the contract in the event things were not working as originally planned. As it turned out, this preemptive outs worked very much in our favor and we did not have to fight to get out of an agreement.
Budget Concerns In order to continue serving our membership effectively We completed the survey discussed previously and used the analysis from those responses to determine satisfaction and possible direction We do understand that we serve Real Estate Professionals and while many are very technically adept, the industry has and will continue to be based on personal contact and service at the base level regardless of how that client came to you We DO understand that the products and services we put forth for our membership are easy to use, relevant to our members needs in the local market and always offering the ability to be flexible and accommodate new issues that always arise A potential future model for Triad MLS, and one certainly under consideration, could be to offer more cafeteria based options that are tailored to all our customers from the Shareholders to each of our respective downstream customers (participants/subscribers)
Fee Increase Triad MLS Fee Increase to Shareholders Based on above factors We realized that while not feasible to increase fees to our shareholders by a number that could cause a great impact on them and our mutual membership, we needed to consider a plan to overcome our financial shortfall due to a decrease in membership and the services we continue to offer This is part of our strategic plan over the next 15 months and is one reason we are exercising our due diligence in reviewing MLS systems and software as our current agreement either renews or expires in July 2014
Fee Increase The BOD reviewed historical financials and budget performance over all those years (2006-2008)
Fee Increase The BOD reviewed our historical financials and reviewed budget performance over all those years (2009-2011)
Fee Increase The BOD reviewed our historical financials and reviewed budget performance over all those years (2012-2013)
Fee Increase Triad MLS Fee Increase to Shareholders After all material extensively reviewed and discussed over period of several BOD meetings, here is final decision and course of action The BOD fully supported a dues increase from Triad MLS to our Shareholders and Subscribing Associations of REALTORS (ARBOR) in the amount of $5.00 per member per month This increase will go into effect with the invoices generated in January 2014 For unlicensed staff accounts, there will be a $2.00 increase per member per month
Budget Process Triad MLS Budget Process Our budget is prepared first by the Executive Committee and then presented to the full Board of Directors for review, discussion and vote The Executive Committee is ALWAYS made up of at least one representative from each Shareholder Association The Board of Directors is ALWAYS made up of three representatives from each Shareholder Association The budget has been discussed and approved unanimously by the Board of Directors EVERY year for the past ten years Underlying theme: THIS DUES INCREASE WAS NOT TAKEN LIGHTLY
Rules and Regs Changes Rules and Regulation Changes
Future Projects 2014 and Beyond Future Projects and Enhancements Tempo/Fusion/ Other System? Review three MLS platforms and determine best suitable SINGLE platform to replace the two we are currently operating This is biggest initiative at this current time and we have created a MLS Search Task Force that is meeting on December 10 th and 11 th to review 3 different MLS systems CoreLogic Matrix platform LPS Paragon FBS flexmls
Future Projects 2014 and Beyond MLS System Search We had both staff and volunteers participate in events in Raleigh and Charlotte when they were considering options With the knowledge that we gleaned from both of those experiences, our leadership felt that utilizing a consultant to drive this process was not necessarily the best use of funds based on our research and the help of peer MLS s that were willing to share their processes with us. We solicited our participating Associations to provide us with the names of 5 people from each entity and hopefully with a diverse representation such as: Head Broker - Appraiser List Agent - Unlicensed Staff Sell Agent We took into account representation by both large and smaller firms
Future Projects 2014 and Beyond MLS Search Process Each vendor will be given a specific set of testing parameters to follow when they present to us. It is felt that this will eliminate these folks coming in and just giving us their standard sales pitch telling us how great they are After the in-person vendor sessions, user names and passwords will be distributed to our task force members and we will all begin our testing We will be providing a standard testing script and request that members test all these items as they progress through their review We will also welcome any additional comments outside of those standard testing parameters and have left space on review form for them to complete Group will have until Friday January 3 rd to complete testing and return results to us We will then all meet on Thursday January 9 th at the Triad MLS Office and Review analysis on each vendor from testing Final review possibly cutting one vendor from mix
Future Projects 2014 and Beyond MLS Search Process (cont.) Once the group gets through those processes, we will present findings to Board of Directors at our January Board meeting on the 23 rd. The full Board of Directors is also invited to participate in this entire process The Board will review the analysis from testing along with the recommendations from the Task Force and then pursue discussions with applicable parties Final decision could be contingent upon acceptable contract terms
Reporting Options Future Projects 2014 and Beyond Still on the table and always included in our forward planning are some options for replacing the old NAR Quarterly Economic and Market Watch Reports 10K Reporting Terradatum (Clarus Market Metrics) More to follow and BOD will be updated accordingly Triad MLS2Go Consumer Access/Agent Branding Although we are currently now live with TriadMLS2Go, we are still planning on releasing the piece that will allow agents to brand apps directly to their clients As originally planned, the MLS2Go app is the MLS Public Portal presence in the app store (both IOS and Android) Once routing rules are accommodated to duplicate what we did with the consumer facing web site, this will be open to consumers
Future Projects 2014 and Beyond Continued development of Public Portal and rdesk Framing solutions Work with leadership and members to create reasonable advertising policies so we can start promoting the portal to consumers in our local area? Help members understand that this helps ALL members of Triad MLS The more listings you have, the more traffic you are likely to get and it is hard to see how help in that fashion can seem competitive? Expand current training regimen to include specific class on new CRM and IDX Framing utility It is obvious by looking at this product that we ll need to educate our members in order for them to get the most out of this tool However, once the true benefits are seen, it will be very difficult to say that the training was not totally worth it!
Member Benefits Triad MLS Member Benefits We continue to let our members know all the benefits they have available to them by being a member of Triad MLS though our local Associations. These include: MLS Data Access (Tempo 5 / Fusion / Future-?) Free Training Fusion (access MLS from any operating system or browser) MLS Public Portal TriadMLS2Go Mobile App Data Coop Realist Property Panorama Announce My News rdesk IDX Framing and Customer Relationship Management
Triad MLS New 2014 Directors New Director Appointments As directed by our bylaws, one of the reasons for the Shareholder meeting is for the purpose of appointing new directors for the Triad MLS BOD Each of the Shareholders shall separately determine the persons to be appointed as directors by such Shareholder prior to the annual meeting, with such persons to be formally appointed and introduced at the annual meeting Voting Designee for Shareholder Each Shareholder shall designate, no later than January 1 of each year, the name and office address of one individual (the voting designee ) to cast the votes which the Shareholder is entitled to cast at any Shareholder meeting, which designation shall be given in writing to the CEO of the Service and shall be effective until revoked by the Shareholder
Thank You!! Thank you for attending this annual Shareholders Meeting of the Triad MLS. Our overall goal is to provide our members with a stable, secure MLS system that will help them conduct their business. We understand that we work for the entire membership and we base our day to day actions on that fact.